“The robust profit result was assisted by some significant performance rebates awarded to us in the first quarter of 2007/08 by some of our major suppliers for achieving their 2006/07 full-year sales targets,” itX general manager, Greg Newham, said.

Other highlights included the distributor’s Sun channel development provider (CDP) team, which achieved healthy growth in the business compared to the same period last year. The launch of itX’s Pump up the Volume campaign saw Sun’s AMD- and Intel-based servers jump by 20 per cent over the past six months, Newham said.

Its software distribution and managed services business also posted organic growth in revenue and margin.

“Organic growth in our continuing businesses contributed more than two-thirds of the profit growth in 2008,” he said.

On the services side, itX’s acquisition of Web application hosting business, ICO in July last year, made a strong contribution to the company’s pre-tax earnings of about $1 million, according to Newham.

“ICO has performed well above our initial expectation and proven to be an excellent acquisition,” he said.

Its relationship with both Citrix and VMware put the distributor in a good position to take advantage of growth in the virtualisation space, he said.

The Nexos services business unit was also performing ahead of expectations. The acquisition of Briell Marketing also had the potential to increase its growth within itX environment.

“It should make a significant contribution to the overall profitability of the company. In addition, we continue to seek acquisitions that will add value to our business,” Newham said.

“The combination of further organic growth in our distribution and services businesses, along with the addition of new business, should put us in a good position to optimise results in FY2009, notwithstanding the less buoyant business environment that we expect to encounter.”

Slideshows

Google and Microsoft tackle triple value play at Synnex Alliance 2018

This Synnex Alliance roadshow, in association with Google and Microsoft, started with the end-user and worked back to define the notion of value, outlining the lucrative partner opportunities ahead in 2018.

Changing names: the top company rebrands hitting the channel

The past year has seen a flurry of acquisitions, sales, consolidations and business transformations in the local tech sector; ARN takes a look at the company name changes and rebrands across the Australian channel that have resulted from all this activity.

Upcoming tech talent share insights at Emerging Leaders 2018

The channel came together for the third running of the ARN Emerging Leaders Forum in Australia, created to provide a program that identifies, educates and showcases the upcoming talent of the ICT industry.

Copyright 2018 IDG Communications. ABN 14 001 592 650. All rights reserved. Reproduction in whole or in part in any form or medium without express written permission of IDG Communications is prohibited.